Stockton Borough Council Planning Committee has given a £200M biomass power station the go-ahead.
Gaia Power, will begin work on building the plant, while consultant Aker Solutions has been hired to develop the 50 MWe biomass power station.
Using recycled wood chippings, the plant will generate enough energy in a year to provide more than 80,000 homes with green electricity.
Neil Etherington of Able UK Group, which is providing their Billingham Reach site to develop the plant, welcomed the planning approval.
“We have worked closely with Gaia Power throughout the development of the project and we are delighted to welcome the company to Billingham Reach,” development director Etherington said.
“I think this is an excellent example of two locally-based, locally-owned and locally-managed companies co-operating to put our area at the forefront of renewable energy technology.”
Expected to be in operation during 2012, the project will generate 400 jobs during construction. Later there will be 50 high-quality permanent jobs and an equal number of supply-chain positions.